STB orders BNSF, CP to provide reports on grain service improvements

The Surface Transportation Board (STB) on June 20 issued a decision that requires BNSF Railway Co. and Canadian Pacific to publicly file their plans to resolve grain traffic backlogs and provide weekly status reports pertaining to grain-car service.

Earlier this year, the board began learning about grain service problems and congestion occurring across significant portions of the nation’s rail network, particularly on BNSF's and CP's systems. In response, the STB sent letters to BNSF and CP executives requesting information on how each Class I planned to restore its service levels.

The board also held a public hearing on April 10 to provide interested persons the opportunity to report on recent service issues in the Midwest and to hear from rail industry executives on plans to address the problems. During the hearing, farmers and representatives of agriculture producers described severe, negative effects resulting from backlogged grain car orders and delayed shipments of loaded grain cars, STB officials said in the decision.

Since the hearing, BNSF and CP have provided data to the board on a regular basis regarding the status of their operations and their progress in resolving the ongoing service issues. Although the data submitted by both railroads indicates some initial progress has been made, "the board remains very concerned about the limited time period until the next harvest, the large quantities of grain yet to be moved and the railroads’ paths toward meeting their respective commitments," STB officials said.

Therefore, the board now has directed CP to provide by Friday a plan to resolve the car-order backlog in its U.S. network, including a timeline, and to ensure a fluid and reliable interchange of loaded and empty grain cars with the newly formed Rapid City, Pierre & Eastern Railroad. BNSF by Friday must provide an updated plan to resolve its backlog of grain-car orders, including a timeline.

Both Class Is also must begin providing the STB weekly status reports on Friday. The reports must include the running total of outstanding grain-car orders by state, the total number of new orders, orders filled and orders cancelled for the week, and the average number of days late for all outstanding car orders.

"These reports will be required for each carrier until it resolves its backlog of unfilled grain car orders," STB officials said.